Calcuating Effective Annualm Rate (EAR)
Not what you're looking for?
Calculating EAR. First National Bank charges 12.6 percent compounded monthly on its business loans. First United Bank charges 12.8 percent compounded semiannually. As a potential borrower, which bank would you go to for a new loan?
Purchase this Solution
Solution Summary
The solution explains how to calculate the EAR with different compounding frequency
Solution Preview
We need to calculate the Equivalent Annual Rate. Let us assume we borrow $100, then the compound interest formula for First National Bank ...
Purchase this Solution
Free BrainMass Quizzes
IPOs
This Quiz is compiled of questions that pertain to IPOs (Initial Public Offerings)
Learning Lean
This quiz will help you understand the basic concepts of Lean.
Writing Business Plans
This quiz will test your understanding of how to write good business plans, the usual components of a good plan, purposes, terms, and writing style tips.
Business Processes
This quiz is intended to help business students better understand business processes, including those related to manufacturing and marketing. The questions focus on terms used to describe business processes and marketing activities.
Income Streams
In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.